2. Development dynamics

• What are some examples of economic development indicators?

  
  

  • GDP

  • Poverty line
• Why is it important to use more than one indicator when measuring development?• Different measures give different results so using multiple measures gives a better understanding of how developed an area is.
• How does the Human Development Index (HDI) work?• A composite index based on life expectancy, education and income
• What is GDP?

  gross domestic product - The total value of goods and services produced by a country in a year (measured in US$)
• What is the poverty line?

  the estimated minimum level of income needed to secure the necessities of life. the World Bank uses $1.25 per person, per day.
• What are some examples of social development indicators?

  • Access to safe drinking water• Literacy rate
• How is access to safe drinking water measured?

  the percentage of the population with access to an improved (piped) water supply within 1km
• What is literacy rate?

  Percent of the population, aged over 15, who can read and write.
• Define HDI


  Human Development Index - social and economic indicator that gives a country a score based on the average life expectancy, education and income. The calculation is between 0 and 1, with the higher the number the more developed the country.
• Why is HDI a better development indicator than GDP?

  HDI is a better indicator than GDP because HDI is a composite (social and economic) indicator that gives a country a score based on the average life expectancy, education and income. Wealth can be very unevenly distributed, therefore, in some country's wealth goes to a few, whereas others spend their limited wealth on health and education, benefiting everyone. Whereas GDP is just an economic indicator, measuring the total value of goods and services produced by a country in a year, because it is an average, it can hide extremes.
• What is an example of a political development indicator?

  • The Corruption Perceptions Index
• How does the Corruption Perceptions Index work?

  It uses a scale from 10 (honest) to 1 (very corrupt).
• Who does The Corruption Perceptions Index help?

  Investors so they can see if their money is safe with the countries.
• What is a population structure?

  The number of each sex in each age group (e.g. 10-14)
• What is Demographic data?

  All data linked to population e.g. birth rate, death rate ect.
• What does a population pyramid look like for a developing country?


  a triangle - large base (high birth rate), low life expectancy, high infant mortality rate, concave, youthful population

  
• What does a population pyramid look like for a emerging country?


  decreasing birth rate, concave, higher life expectancy, lower infant mortality rate, youthful population

  
• What does a population pyramid look like for a developed country?

  concave, high life expectancy, low infant mortality rate, convex, ageing population

  
• Explain why birth rates are different between LICsand HICs

  • LICs think of children as an economic asset as they can work but in HICs they become a liability as they need to go to school so people don't want as many children• Women are educated in HICs and have more opportunity for employment, delaying when they have a family, leading to fewer children• Better healthcare means lower infant mortality so people have less kids as there is less chance they'll die.
• What is fertility rate?


  Average number of births per woman
• What is maternal mortality?


  Number of mothers per 100,000 who die in childbirth.
• What is the dependency ratio?


  the number of people who are too young or too old to work, compared to the number of people in their economically active years
• What is the North-South divide?


  Also called Brant line. Shows the inequality between HICs and LICs. Most of the HICs are found in the northern Hemisphere
• What does HIC mean? What is an example?

  High Income Country e.g. Germany and USA
• What does LIC mean? Give examples

  Low income country e.g. Chad and Ethiopia
• Explain the social reasons for why a country's development is held back (leading to global inequality)

  Poor education - children aren't educated, can't get good jobs, stay in farming preventing the country from developing into industrial or service-basedPoor healthcare - it's more expensive so people have to use all their money to get healthcare for their family so they don't die. Meaning they can't afford things like education.
• What was Rostow's theory?

  Rostow believed that there were five stages of development where a country starts off as an agriculture-based economy and transitions to a service-based economy. This happens because of increased and better technology and more investment in the economy.

  
• What is Frank's dependency theory?

  This stated that the periphery (developing and emerging countries) traded raw materials to the core (developed countries) where the materials are refined and sold for more. Therefore he believed that poorer countries aren't simpler versions of wealthier countries, but are weaker members of a global economy whose rules are decided by the wealthy.

  
• What is globalisation?


  Countries and the world becoming increasingly interconnected
• How does globalisation happen?

  • National borders becoming less important• Increasing volumes and variety of trade in goods and services• Increased spread of technology• Increased flows of investment into other countries• Outsourcing• Culture
• What is foreign direct investment?


  Investment made by a foreign company in the economy of another country. e.g. TNCs into south-east Asia for transport infastructure and factories as goods could be made cheaper there.
• What is global shift?


  Changing where manufactured goods were made, from developed to developing countries
• Define TNC

  transnational corporation - a company that produces goods and services internationally
• What is economic liberalisation?

  The removal of economic restrictions/regulations by the government
• What is outsourcing?

  Where a company moves services overseas, such as software development or call centres because labour is cheaper.
• How has economic growth contributed to social change?

  • Less unemployment so more taxes being paid to the government as people are working so more money invested into services• People have more money to spend on healthcare and education• Later marriage because of education
• How has economic growth contributed to urbanisation?

  The jobs created are usually in urban areas so it acts as a pull factor for people in rural areas to move into urban areas.
• Urbanisation

  The increasing percentage of people moving into an urban area
• How has economic growth contributed to core/periphery regions?

  More economic growth has occurred in urban areas meaning there's more difference in the economies of the rural and urban areas
• What is the core in economies?


  It is usually a very urban area that is the wealthiest